WOMEN AND AUSTERITY: SOME REFLECTIONS ON THE IMPACT OF AUSTERITY ON THE PROSPECTS FOR

GENDER EQUALITY

Jill RuberyEuropean Work and Employment Research

CentreManchester Business School

Reflections based on:

Edited book with Maria Karamessini Women and Austerity: The Economic Crisis and the Future for Gender Equality Routledge.

16 chapters including one EU overviews(Bettio and Verashchagina) plus nine case studies of countries in the eye of the storm plus (7 EU countries, Iceland and the US) plus framework and policy papers on the gender contract, EU employment policy and macroeconomic options.

Initiative is response to austerity plus update of Women and Recession (Routledge 1988 and 2010)

Framework for analysis.Gender/gender relations as a social construct/ institution→ impact of recession/austerity will depend upon

form/robustness of gender regimeGender difference/ segregation persists→immediate impact depends on sectoral/occupational effects→effects vary by type of recession- from financial crisis to

austerity and public sector/public services cuts Potential for critical juncture in gender relations-incremental or

radical change in gender relations as a social institution → robustness of policy commitments to gender equality→ impact on employment and social models and implications for

gender equality →implications for gender relations- variations by gender regime

but also by gender and class

Changes in gender regime pre crisis: converging divergence

• Significant, in some cases spectacular increases in female employment rates 1994-2007- exceptions US ( small change) Hungary ( fall then a rise)

• Variations in overall levels largely related to low educated women’s employment rates

• Educational advantage for men has been reversed in almost all cases.

• Change reinforced by fairly dramatic changes in care regimes although still wide variations among countries

1994 2007 Δ1994-2007

15-64 y. 15-64 y. in p.p.Greece 37.1 47.9 10.8

Hungary 47.8 50.9 3.1

Iceland 74.6 81.7 7.1

Ireland 38.9 60.7 21.8

Italy 35.4 46.6 11.2

Portugal 54.1 61.9 7.8

Spain 31.5 55.5 24.0

UK 62.1 66.3 4.2

USA 65.2 65.9 0.7

EU-21 average 49.9 58.5 8.6

OECD average 52.957.2 4.3

Change in female employment rates pre crisis

Changes in gender regime pre crisis: converging divergence

But no significant change in level of segregation related to changes in employment rates - indeed some increase in sectoral segregation

High concentration of women in public sector, especially higher educated.

Concentration of women in part-time work is nationally specific (some increase in Spain and Italy.) Elsewhere women’s vulnerability may be related to forms of self employment.

More equal representation of men and women in temporary work

Table 16.6: Share of public sector employment * in total employment by sex

in selected European countries and the US 2008

%

All employe

d men

All employed

women

High-educated women

Medium-educated women

Low-educated women

Female share of

all employed

Iceland 14 45 62 37 39 74

UK 16 43 59 37 31 70

Ireland 15 38 49 28 30 73

Hungary 13 33 56 24 23 69

Italy 13 30 54 29 15 61

Greece 14 28 56 20 8 54

Portugal 17 28 59 27 18 65

Spain 15 26 44 20 11 61

USA 13 (18) 20 (40) 57 (66)

Gender differences in recession and austerity : a story of two halves

Recession effects- ‘he-cession’• Most job loss reflects sectoral shares- little evidence of

women acting as buffer as recession affected male-dominated sectors- young people of both sexes and male migrants main buffers (Bettio et al 2013)

• Gender gaps closed but due to deterioration in men’s position.• No evidence of women withdrawing from labour market

( acting as a reserve army) and in some cases reinforced commitment

• Rise in female headed households and decline in dual earner households (Bettio et al. 2013)

Table 16.7: Employment and unemployment rates (%) during the crisis

population aged 15-64

Employment rate Unemployment rate

Men Women Men Women

2008q2 2012q2 2008q2 2012q2 2008q2 2012q2 2008q2 2012q2

Italy 70.5 66.5 47.2 47.2 5.6 10.1 9.0 11.8

Hungary 63.1 62.2 50.2 52.2 7.6 11.6 8.1 10.5

Greece 75.3 60.6 48.8 42.0 4.9 21.7 11.4 28.0

Spain 74.3 60.4 55.2 50.9 9.1 24.7 12.4 25.0

Ireland 75.7 62.4 60.7 54.8 6.4 18.5 4.0 11.2

Portugal 74.3 65.6 62.8 59.0 6.7 16.1 9.2 16.0

USA 76.9 72.1 65.7 62.2 5.6 8.5 5.2 8.0

UK 77.6 75.2 66.0 64.8 5.8 8.6 4.9 7.5

Iceland 88.7 81.9 79.7 78.3 2.6 5.8 2.3 6.1

EU-27 72.9 69.8 58.8 58.6 6.5 10.5 7.6 10.9

Source: OECD.Stat

Country

2009 2009-2007 (%)

Male bread-winner couples

Dual-earner couples

Female bread-winner couples

Male bread-winner couples

Dual-earner couples

Female bread-winner couples

Spain 30.40 63.28 6.33 -4.60 1.40 3.22Greece 37.04 54.23 8.73 -5.36 -1.46 6.83Hungary 27.06 60.20 12.74 1.40 -4.47 3.07Iceland 8.96 86.30 4.74 1.05 -3.92 2.87Italy 35.86 53.76 10.38 -1.67 -4.97 6.64Portugal 25.14 63.17 11.69 0.16 -6.89 6.72UK 20.75 67.98 11.27 2.34 -8.73 6.39Simple average EU24 21.4 69 9.6   0.4 -5.1 4.7

Table 4.2: Couples by partner’s income role in European countries, 2007-2009

Note: Couples with at least one of the partners working. Source: EU-SILC surveys for 2008 and 2010, own elaborations. Reproduced from Bettio et al. (2013: Table 1.3).

Gender differences in recession and austerity: a story of two halves

Austerity effects- from ‘he-cession’ to ‘sh(e) austerity’Public sector employment changes from protective role to key

source of downturn in demand – most impact on womenAusterity combined with flexibility-• flexibilisation/ feminisation of labour market for low skilled men- • deregulation of labour market justified as reducing privileges of

insiders (but women more affected by cuts/freezes to minimum wages or rights of employers not to follow collective agreements)

In some countries inequalities within women increased (US)/ in others more compressed (Greece)

Table 16.8: Change in employment by total and in government, education and health sectorsin selected European countries and the US 2008-2010, 2010-2012 %

Total (Total female)

Public administration Education Health All public

sector (All public sector female)

All NACE NACE O* NACE P NACE Q** NACE O+P+Q2008q2-2010q2

Ireland -12.0 (-6.5) 5.3 3.0 6.4 5.1 (3.9)Greece -3.4 (-0.8) -2.2 2.8 7.4 1.9 (5.2)Spain -9.6 (-5.1) 7.2 3.7 7.9 6.3 (7.3)Italy -2.4 (-1.0) -2.0 -4.4 1.4 -1.6 (-0.7)Hungary -2.3 (0.3) 8.1 3.8 0.2 4.1 (4.8)Portugal -4.7 (-3.0) -10.6 7.5 16.5 3.8 (8.1)UK -2.4 (-1.5) -8.3 14.2 5.3 4.8 (5.2)Iceland -8.0 (-2.6) -3.3 -4.5 9.8 1.3 (-2.3)USA -4.6 (-3.4) 1.1 3.7 3.7 2.4 (2.1)

2010q2-2012q2 Ireland -1.5 (-0.5) -8.1 -1.5 4.2 -0.2 (-0.5)Greece -14.1 (-13.5) -13.2 -7.8 -7.1 -9.8 (-14.8)Spain -5.8 (-2.8) -3.6 0.9 2.6 -0.1 (2.7)Italy 0.1 (2.5) -2.9 -0.7 3.0 0.0 (0.5)Hungary 2.4 (2.2) 1.8 1.1 2.5 1.8 (0.5)Portugal -5.9 (-4.6) -5.3 3.8 8.9 2.7 (2.2)UK 1.3 (0.9) -7.0 -1.8 0.9 -1.8 (-1.0)Iceland 1.7 (2.6) -4.6 -3.7 -9.5 -6.3 (-6.4)USA 2.1 (1.6) -3.7 5.6 3.7 -0.1 (0.2)

Table 16.9: Changes in part-time and temporary employment

in selected European countries and the US 2008-2011

End - initial year change (%)

Part-time Temporary

Men Women Men Women

Greece 16.6 -4.7 -8.7 -13.1

Hungary 65.5 45.4 6.5 18.8

Iceland 16.7 0.6 20.4 18.4

Ireland 28.0 1.5 8.6 -3.1

Italy 5.4 3.1 3.1 -4.7

Portugal 37.0 -5.9 -5.8 -6.3

Spain 25.8 -0.8 -24.4 -18.6

UK 12.0 3.8 17.7 6.5

USA 1.1 -7.3

Table 16.10: Changes to pay and working conditions in the public sector

Greece Pay cuts up to 45%. Working time increased from 37.5 to 40 hours. Recruitment freeze/10- 20% replacement rate form 2011.

Hungary Pay scale freeze plus 8.2% average cut in gross average pay 2008 -2010. Public works programmes but at only around 70% of the minimum wage.

Iceland Nominal salary cuts for many government employees.Ireland Pay cuts average 14% lower pay, pensions for new entrants Recruitment freeze/ early

retirement scheme.

Italy Pay freeze plus 5-10% cuts for higher paid and a 20% replacement rate. Plan for 10% cut in public sector employment.

Spain Salary cuts 5% 2010, a base salary freeze for 2012,plus bonus cut. 0-10% replacement. Increase in civil servants’ and teachers’ working time.

Portugal Pay cuts (3.5% to 10.5%) plus suspension of 13th and 14th month salaries, recruitment freeze since 2011 and 2% per annum personnel until 2014. Increase in teaching hours.

UK Imposed two year wage freeze 2010-2012 to be followed by two years of 1% pay rises. Budget cuts imply a 16% cut in public sector employment by 2018.

USA Federal wages freeze since 2010 and 0.5% employment decline 2011. Higher cuts at state level plus removal of public sector employees’ collective bargaining rights in some cases.

Gender relations/gender equality at a critical juncture?

1) Fragility of policy commitments to gender equality based on business case

• Almost disappearance of gender equality from EU policy programme

• Roll back of gender equality policy in many countries

• Gender equality as a luxury good?

Table 16.11: Changes to equality policies

Greece New National Programme for Substantive Gender Equality 2010-2013 funded by the European Social Fund.

Hungary New emphasis on family policy in contrast to gender equality Iceland New gender equality laws (40% quotas on boards, regulation of prostitution

and domestic violence, equal pay standard and gender mainstreaming) but parental leave pay cut reducing fathers’ take up (to be reversed 2013).

Ireland Dismantlement of gender mainstreaming system plus major budget cuts, closures and mergers of gender equality bodies.

Italy Symbolic introduction of 3 day paternity leave and new €300 voucher for women returning to work after 5 months maternity leave (for 3 years)

Spain Equality Ministry abolished in 2010 after opening 2008 and some gender monitoring institutes at the regional level closed. Introduction of paternity leave postponed

Portugal New gender equality policies introduced in 2011 have been suspended by new right wing government at end of 2011.

UK EHRC’s budget cut by 2/3. Early review of gender duty on public sector organisations. Failure to implement parts of 2010 Equality Act.

USA Equal pay rights restored by Lily Ledbetter Fair Pay Act. Health care reforms.

Gender relations/gender equality at a critical juncture?

2) Restructuring of social and economic modelsIf social models fundamentally restructured, critical juncture in gender relations is

more likely. Social provision of care only option that does not involve exploitation of other women or a care deficit

Responses to crisis (Walby) may be neoliberal (7 out of 9 countries), nationalist ( Hungary) or social democratic/feminist (Iceland). Some governments using austerity to bring about widespread radical change- UK, Spain, Portugal ( others position less clear)

Impact most on poorest/often women ( only Iceland protecting poor)- Greece minimum wage ↓ 22%, Ireland - universal charge, UK most deprived regions cut the most, Portugal increasing household means testing).

Widespread reversals to social investment in care/ defamialisation of care- long term threat to gender equality as socially progressive policy

Long term structural problems of economies not addressed- But women’s employment still important to macroeconomic and

microeconomic/family policy and strategy- (high employment rate/family security)

Family support Childcare EldercareGreece Abolition of child tax credits Reduced provision and

understaffingFuture of ‘home help’ not secure

Hungary Freeze to family allowances but generous family tax reductions in new flat rate tax

Modest expansion of nursery facilities

Municipalities reducing provision of elder care 1

Iceland Frozen child benefits/ more means testing

Rise in childcare costs

Ireland Reduced child benefits No change from low base. Cuts to domiciliary care and to carers’ allowances

Italy Major reductions in funds for family policies

2007 childcare programme halted

Budget cuts reducing social care

Spain 2007 policy of giving €2500 to new parents abolished.

New domiciliary care rights suspended

Portugal Means-testing of social benefits including family support

Halt to new investments in social care but existing projects implemented.

Halt to new investments in social care but existing projects implemented.

UK Cuts in child tax credits and freezes to child benefits plus abolition for higher paid.

Scaling down of subsidised childcare services plus reduced child tax credits

Budget cuts leading to cutbacks in care provision

USA More generous child tax credits

Reduced state funding for childcare services

Reduced state funding for eldercare services

Changes to care regimes

Gender relations/gender equality at a critical juncture?

3) Austerity policies and gender relations• Women ever more integrated into wage employment- reinforced by pension

reforms• Gender gaps apparently declining but need to differentiate by class and

direction- narrowing among lower educated due to levelling down for men- but gender gaps may widen for higher educated if public sector employment deteriorate.

• Conversion of positive policies into negative: public sector as good employer to profligate employer; higher employment for women into requirements on lone parents to work irrespective of care provision

• Re-emergence/ strengthening of conservative ideologies- e.g. US Tea Party, abortion debate Spain, family policy Hungary . But not supported by women or compatible with women’s increased need to work..

• Declining provision of care may lead to lower levels of care and/or to further declining fertility

ConclusionsGender equality, defined by closing gender employment gaps,

even improved in the first recession phase but future prospects are bleak.

1. Closing gender gaps achieved by a levelling down for men, not up for women

2. Full implementation of austerity likely to harm women’s employment position more than men’s;

3. And most importantly, the pursuit of gender equality as a socially progressive agenda is being put into question by neoliberal policies and reversals in de-familialization of care

These policies are affecting men as well as women and there is no evidence that a return to a ‘traditional’ form of gender regime is a realistic option- for family strategies or for women.

Conclusions

Neoliberalism leading to a polarized society by class and wider intra-gender inequalities

Need an alternative strategy for more sustainable/less unequal growth that challenges the neoliberal model

But any progressive plan for a route out of the crisis requires: • more common cause to be made across the gender divide • gender equality be a central objective Only by recapturing the state and preserving/developing the

public space, is there the possibility of an alternative calculus to the market that values non-market activities, in particular care.